Sientra(SIEN) - 2023 Q1 - Quarterly Report

Financial Performance - Net sales increased by approximately $1.2 million, or 5.4%, to $22.6 million for the three months ended March 31, 2023, compared to $21.4 million for the same period in 2022[143]. - Cost of goods sold increased by approximately $1.9 million, or 21.7%, to $10.4 million for the three months ended March 31, 2023, compared to $8.6 million for the same period in 2022[144]. - Gross margins decreased to approximately 53.9% for the three months ended March 31, 2023, down from 60.0% for the same period in 2022[145]. - The company incurred net losses of $12.9 million during the three months ended March 31, 2023, and used $6.7 million of cash from continuing operations[151]. - Net cash used in operating activities was $6.3 million during the three months ended March 31, 2023, a decrease from $17.9 million during the same period in 2022[157]. - Net cash used in investing activities was $0.6 million during the three months ended March 31, 2023, compared to $0.2 million in the same period in 2022[158]. - Net cash provided by financing activities was $0.2 million during the three months ended March 31, 2023, a decrease from $5.3 million during the same period in 2022[159]. Expenses - Sales and marketing expenses decreased by approximately $5.4 million, or 34.9%, to $10.2 million for the three months ended March 31, 2023, compared to $15.6 million for the same period in 2022[146]. - Research and development expenses decreased by approximately $0.4 million, or 13.9%, to $2.7 million for the three months ended March 31, 2023, compared to $3.1 million for the same period in 2022[147]. - General and Administrative (G&A) expenses decreased by approximately $0.4 million, or 3.5%, to $9.9 million for the three months ended March 31, 2023, compared to $10.2 million for the same period in 2022[148]. Cash Position and Financing - As of March 31, 2023, the company had cash and cash equivalents of $19.4 million, raising substantial doubt about its ability to continue as a going concern for at least one year[151]. - The company is evaluating various cost-saving measures to reduce operating expenses and cash outflows, while also seeking to generate significant increases in net sales[152]. - The company anticipates that losses will continue in the near term, necessitating potential additional equity or debt financing[152]. - The company issued and sold 1,778,500 shares of common stock, raising approximately $14.0 million in net proceeds on October 25, 2022[154]. Business Developments - The Company launched the Viality fat transfer system commercially on March 1, 2023, following its acquisition in December 2021[122]. - The Company entered into a partnership with Aziyo Biologics to expand the distribution of the SimpliDerm product line for reconstruction surgery[121]. - The Company has one operating segment named Plastic Surgery, focusing on breast implants, tissue expanders, fat transfer, and scar management[120]. Market Conditions - The Company expects net sales to fluctuate quarterly due to seasonality and macroeconomic conditions[127]. - The company continues to face risks from global economic conditions, including inflation and consumer confidence[124].